HOUSE APPROVES BILL TO EXAMINE SALE OF FEDERAL BUILDINGS

By ExchangeMonitor

The House of Representatives yesterday passed a bill that would establish a new commission to review federal buildings and properties for potential sale. While an earlier version of the Civilian Property Alignment Act would have specifically called for the Department of Energy’s headquarters building in Washington, D.C., to be sold, the version approved yesterday by a vote of 259-164 did not include such a provision. According to the bill’s chief sponsor, Rep. Jeff Denham (R-Calif.), the measure could generate approximately $15 billion in property sales, along with additional savings from future cost avoidances. “Unfortunately, under existing law, selling these vacant and underutilized properties is not easy—the process is too cumbersome and congested with red-tape. The Administration has tried, but realized it cannot achieve major savings without reform. My bill streamlines the process to sell these properties, eliminate waste and promote economic growth,” Denham said in a statement.

The White House has come out against the bill, raising several concerns in a Statement of Administration Policy issued Feb. 6. “While the Administration appreciates that H.R. 1734 would pursue reforms to the Federal Government’s real estate portfolio, the Administration believes H.R. 1734 does not go far enough to create a transformative process that would save taxpayers billions of dollars,” the White House said. Among the Obama Administration’s concerns is that under the bill, the new commission’s recommendations, as approved by the president, would also have to be approved by a joint resolution of Congress to go into effect. “This approach is inconsistent with the Administration’s proposed procedural model for real estate disposal that proved effective under BRAC in overcoming the competing stakeholder interests that have historically slowed progress in this area,” the White House said, referring to the Defense Base Closure and Realignment Commission, which is responsible for evaluating military installations for potential closure.

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